Trendlyne Analysis
Nifty 50 closed at 17,706.85 (-121.2, -0.7%), BSE Sensex closed at 59,910.75 (-520.3, -0.9%) while the broader Nifty 500 closed at 14,904.30 (-50.0, -0.3%). Of the 1,979 stocks traded today, 971 were gainers and 955 were losers.
Indian indices extended their losses and closed in the red, with the Nifty 50 hovering over the 17,700 mark. The volatility index, India VIX, rose above 12 at the close. India’s consumer price index data for March was reported at 5.66%, slightly higher than economists’ estimates of 5.63%.
Finance Minister Nirmala Sitharaman suggested that India might buy Russian crude oil over the price cap imposed by the G-7, if crude prices increase following the cut in OPEC+ production. Regarding the sanctions, she said, "I hope the intent is not to hurt economies which have nothing to do with the war.”
Nifty Smallcap 100 and Nifty Midcap 100 closed in the green, despite the benchmark index closing in the red. Nifty Pharma and Nifty Media closed lower than Thursday’s levels. Nifty IT closed sharply lower, led by industry heavyweight Infosys, which missed street expectations and indicated a slowdown for the IT sector in its earnings commentary.
Most European indices trade in the green, except for Switzerland’s SMI trading in the red. US indices futures trade lower as data released by the US Commerce Department shows a 1% dip in retail sales in March, indicating lower spending by US consumers.
Relative strength index (RSI) indicates that stocks like Aurobindo Pharma, Bajaj Auto, Dr. Reddy's Laboratories and Anupam Rasayan India are in the overbought zone.
Vedanta is rising as reports suggest that it has signed a memorandum of understanding with 20 Korean companies from the display glass industry to develop a manufacturing hub in India. The stock shows up in a screener of stocks with improving RoA for the past two years.
- BofA Securities downgrades its rating on Cummins India to ‘Underperform’ from ‘Buy’ and lowers the target price to Rs 1,434. The brokerage says price hikes based on the new emission norms will impact the company’s sales. It also expects a slowdown in exports.
Monte Carlo Fashions' quarterly sales for Q4FY23 rises 36% YoY, led by sustained high demand. The company’s sales have jumped 101% compared to the pre-covid quarter of Q4FY20. Its yearly sales grow by 22% YoY for FY23. The stock shows up in a screener for companies with high annual EPS growth.
Food, beverages & tobacco, health equipment & supplies and general industrials sectors rise more than 5.6% over the past 90 days.
Nestle rises 4% in a weak market today, ahead of its dividend payout date on April 21. The stock is trading near its 52-week high.
Nestle India, Gujarat Fluorochemicals, Asian Paints and InterGlobe Aviation trade above their second resistance or R2 level.
Kotak Securities maintains its ‘Sell’ rating on Eicher Motors with a target price of Rs 2,800. The brokerage says demand recovery for Royal Enfield remains dull and the intensity of competition will pick up soon.
Precision Camshafts surges as Vijay Kedia adds it to his portfolio in Q4FY23. He buys a 1.1% stake in the company.
Foreign institutional investors invest Rs 4,565.9 crore in the equity market over the past week, according to Trendlyne's FII dashboard. Meanwhile, index futures witness the highest inflow of Rs 6,965.8 crore from foreign investors.
Kalyan Jewellers, Campus Activewear and Hitachi Energy India underperform their industry by more than 10% in the past month.
ICICI Securities maintains its ‘Buy’ rating on Zomato with a target price of Rs 65, indicating an upside of 20.6%. The brokerage believes the stock is trading at an attractive valuation and remains positive about the firm’s outlook given the sustained improvement in its operating metrics. It expects the company’s revenue to grow at a CAGR of 39.7% over FY22-25.
Cyient and ICICI Prudential Life Insurance rise more than 12% in the past month, ahead of their Q4FY23 results on Thursday.
Wipro and MphasiS touch 52-week lows of Rs 352 and Rs 1,660.05, respectively. On the other hand, Ingersoll-Rand (India) and Zydus Lifesciences reach 52-week highs of Rs 2,826 and Rs 509.2, respectively.
Tech Mahindra trades low after being downgraded to ‘Sell’ from ‘Neutral’ by brokerage firm Citi, which has also reduced the target price to Rs 955 from Rs 1,100. The brokerage believes that there are certain risks to growth in the communications vertical (which accounts for 40% of revenue). The company is set to announce its Q4FY23 results on April 27.
- India’s WPI inflation eases to the lowest level in 29 months, registering at 1.34% in March, as compared to 3.85% in February. The decline is due to the fall in prices of basic metals, food products, textiles and non-food articles, among others.
PSU banks like UCO Bank, Punjab & Sind Bank, Central Bank of India, Union Bank of India and Indian Overseas Bank are rising in trade. All constituents of the broader sectoral index Nifty PSU Bank are also trading in the green.
- Zee Entertainment Enterprises is falling as reports suggest that 5.48 crore shares (5.7% equity) of the company, amounting to Rs 1,119.7 crore, change hands via a block deal.
HCL Technologies, YES Bank and Persistent Systems fall 4.8%, 0.7% and 8.7% respectively over the past week, ahead of their Q4FY23 results in April.
Vijay Kedia buys a 0.2% stake in Neuland Laboratories in Q4FY23, bringing his holdings in the company to 1.2%.
Sunil Singhania buys a 2.3% stake in Uniparts India in Q4FY23, adding the company to his portfolio.
Transformers & Rectifiers (India) is rising as it bags an order of supplying transformers worth Rs 131 crore. Its total order book now stands at Rs 1,822 crore. It shows up in a screener for stocks with improving RoCE for the past two years.
Reports suggest that 1.26% equity of Poonawalla Fincorp changes hands in a block deal in pre-open.
Brightcom Group falls as the Securities and Exchange Board of India (SEBI) issues a show cause notice to the company saying that it has overstated its net profit for FY19 and FY20 by more than Rs 1,280 crore. SEBI has also asked the company to rectify the wrongly reported shareholding pattern.
IT stocks like Tata Consultancy Services, HCL Technologies, Wipro and LTIMindtree are falling in trade. Infosys has declined 11% after reporting a dip in Q4 net profit. Nifty IT is down 6% and all constituents of the broader sectoral index are also trading in the red.
Following the IMF and World Bank's estimation that India will be the fastest-growing economy in 2023, Finance Minister Nirmala Sitharaman says that the Indian economy is on track and is likely to grow at 7% in 2023.
HDFC Bank's net profit grows 20% YoY to Rs 12,047.8 crore as net interest income rises by 24%. Gross and net NPAs fall by 5 bps YoY to 1.12% and 0.27%, respectively. Motilal Oswal sees a 15% upside in the bank's target price after reporting robust Q4 results.
Infosys' Q4FY23 net profit falls 7% QoQ to Rs 6,128 crore, missing Forecaster estimates by 6.6%. Revenue dips 2.3% QoQ across all business segments except retail. However, the company reports an order inflow of $2.1 billion in Q4, bringing the total order book to $9.8 billion in FY23.
Riding High:
Largecap and midcap gainers today include Gujarat Fluorochemicals Ltd. (3,250.00, 4.98%), Union Bank of India (73.00, 4.73%) and Aditya Birla Capital Ltd. (164.65, 4.41%).
Downers:
Largecap and midcap losers today include Infosys Ltd. (1,258.30, -9.42%), LTIMindtree Ltd. (4,332.60, -6.75%) and Tech Mahindra Ltd. (1,029.95, -5.24%).
Volume Shockers
30 stocks in BSE 500 are trading on high volumes today.
Top high volume gainers on BSE included HLE Glasscoat Ltd. (603.55, 15.92%), Punjab & Sind Bank (32.20, 15.83%) and KIOCL Ltd. (206.00, 14.35%).
Top high volume losers on BSE were Infosys Ltd. (1,258.30, -9.42%), LTIMindtree Ltd. (4,332.60, -6.75%) and 360 One Wam Ltd. (403.40, -5.78%).
Chalet Hotels Ltd. (363.10, 0.54%) was trading at 16.3 times of weekly average. Eureka Forbes Ltd. (394.00, 0.78%) and Bombay Burmah Trading Corporation Ltd. (914.30, 4.12%) were trading with volumes 11.3 and 9.4 times weekly average respectively on BSE at the time of posting this article.
BSE 500: highs, lows and moving averages
17 stocks hit their 52-week highs, while 3 stocks tanked below their 52-week lows.
Stocks touching their year highs included - Bajaj Auto Ltd. (4,255.00, -0.78%), Zydus Lifesciences Ltd. (502.10, -0.31%) and DLF Ltd. (415.35, 0.53%).
Stocks making new 52 weeks lows included - MphasiS Ltd. (1,736.55, -1.95%) and Wipro Ltd. (361.35, -1.89%).
21 stocks climbed above their 200 day SMA including KIOCL Ltd. (206.00, 14.35%) and Gujarat Ambuja Exports Ltd. (280.70, 5.71%). 10 stocks slipped below their 200 SMA including LTIMindtree Ltd. (4,332.60, -6.75%) and Tech Mahindra Ltd. (1,029.95, -5.24%).